UNISEM (M) BHD (-ve)
SINCE Unisem (Fundamental: 1.25/3, Valuation: 1.2/3) was first picked by our momentum algorithm on Feb 2, the stock has risen by 2.4% to close at RM2.56 yesterday.
Part of this could be due to its latest 1Q2015 earnings results. For 1Q2015, net profit more than doubled y-o-y to RM23.5 million, on the back of a 22.8% increase in revenue to RM280.1 million.
Primarily based in Malaysia, Unisem provides semiconductor assembly and test services such as wafer bumping, leaded and leadless packaging. For 2014, the US accounted for 62% of total sales, while Asia and Europe constituted 19% each.
The company returned to the black in 2014 with a net profit of RM68.4 million, following improved sales volume and rationalization of operations.
Dividends increased to 6 sen per share for 2014, from an average of 2 sen between 2011 and 2013.
Gearing stood at 15.1% at end-March 2015, down from 41.4% in 2011.
This article first appeared in The Edge Financial Daily, on May 15, 2015.